PayPal's transaction process

Transactions going through PayPal follow a few steps, from accepting the request to the payment and reviews. Here's a complete description.

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Written by Sharetribe
Updated over a week ago

The following steps occur in a paid transaction processed by PayPal in a Sharetribe marketplace:

  1. The seller posts a listing and defines a price for the product or service.

  2. The buyer opens the listing page, selects options (dates, shipping, quantity...), and clicks on the "Buy" button (or whatever name you've configured).

  3. On the following page, the buyer reviews the purchase's details and clicks "Checkout with PayPal". They are taken to PayPal to complete the payment. If they don't complete the payment within 1 hour, the transaction attempt is closed.

  4. Once the payment is made, the buyer is taken to a page that displays the transaction details. They are told that the seller needs to accept the transaction before the money is transferred.

  5. The seller gets an email notification of a new transaction that needs to be accepted. If the transaction is not accepted within 3 days or before the end date (whatever comes first), the transaction is canceled, and no money is transferred. Once accepted, the money (minus PayPal's payment processing fee) is transferred to the seller's PayPal account. Both parties get a receipt of the transaction via email.

  6. If the marketplace administrator has set a commission for the marketplace, a second transaction is made automatically. The commission is moved from the seller's PayPal account to the marketplace administrator's PayPal account.

  7. Both users can then discuss freely to agree on details. When the order is completed (users have met, the product is delivered...), they can mark the order as completed.

  8. Users can then review each other.

  9. In the future, when the buyer reviews their PayPal activity, they will see the vendor's PayPal name on the list, not the marketplace name.

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